A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the base amount and adjusted base amount for purposes of determining taxable social security benefits.
Sponsored By: Senator Kennedy, John [R-LA]
Introduced
Summary
Automatic inflation indexing for specific Section 86(c) dollar amounts. This bill would add a new subsection (g) to Section 86 of the Internal Revenue Code to make certain dollar amounts in subsection (c) rise with inflation for taxable years beginning after 2026. Each listed amount in paragraphs (1)(A), (1)(B), (2)(A), and (2)(B) would be increased yearly by the cost-of-living adjustment from section 1(f)(3) with calendar year 2025 substituted into the formula. If an adjusted amount is not a multiple of $100, it would be rounded up to the next $100.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Lower taxes for Social Security recipients
This bill would raise the dollar thresholds used to decide how much of your Social Security benefits are taxable. For taxable years beginning after 2026, each threshold named in section 86(c) paragraphs (1)(A), (1)(B), (2)(A), and (2)(B) would be increased each year by that year’s cost-of-living adjustment. The COLA calculation would substitute "calendar year 2025" for "calendar year 2016" in the referenced formula. After each increase, any amount not a multiple of $100 would be rounded up to the next $100. If enacted, this would reduce the portion of benefits counted as taxable income for people with income near the old limits.
Sponsors & CoSponsors
Sponsor
Kennedy, John [R-LA]
LA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov